Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It may not be what people want to hear but it’s not based on supposition. Why need cash? They are already leveraged beyond any reasonable norm - asset financing, debt factoring and a recent cash raise. The results announced were hugely cash destructive - ships don’t turn quickly. Word around the industry is they aren’t paying their suppliers. Sacking your CIO and other members of your online team and not replacing them signals a tilt towards retail - retailers pay in 30+ days, online is immediate. Putting your ex CEO on garden leave suggests you can’t afford to pay him off in one go. I could go on but there’s the basis for my call. I guess time will tell.
If only share price was driven by wishful thinking. No trading update - I wonder why? Cash position - highly likely appalling from what the results suggest. PhD being blown away by Applied in retail and that’s structural. Here’s my bet. Back to investors for further dilution shortly (they’ve no other option I would suggest) and a share price that will tank. The last placement was 15p before Moon and Clarke’s last set of results - what will this one be? Caveat emptor for me.
Comparing Applied to SIS is like comparing an apple with an orange. Applied is well run, making a 30% EBITDA and growing at 60% in a protein market that is way more competitive than endurance currently is. It does, however, tell the story of what might have been had Moon et al been even remotely competent. The problem for SIS plc is now one of cash, having seemingly exhausted every means of raising it - asset financing, invoice factoring and a recent placement that sent the share price tumbling. New management there is but however good they are - and it’s only Dan Wright who’s new - the future will be bleak until they can inject cash into the business. Yes, the trading update is crucial but its absence to date suggests it might not be what everyone wants to see. I’d love to see a firing SIS but fast cars without petrol don’t move.
Give it a rest fella
Definitely forced out. At last a chairman with some interest in shareholder value and an ability to see Moon for what he was. To all those he’s abused over the years a moment of quiet triumph, to all those who’ve sat back and fed their self-preservation (current CMO/CIO and CCO - neither of whom have a clue about brand or commercial) a moment of rightful anguish. Let’s just hope Dan Wright can get some of the talent that left to reconsider quickly because he will need them.
I’m afraid I can’t answer that as I’m neither a current or ex SiS employee. I do, however, know people who are ex employees and follow open sources such as Glassdoor, LinkedIn and the commercials closely. I am surmising from all of this but from a position of a reasonable background as a Main Board member elsewhere who understands how much of this works. Overall I see a situation where corporate governance has not operated sufficiently in shareholder interest and that major shareholders are now becoming activist investors. That, in my experience, never sits well for current management teams. Add in that 2 of the 3 longer term directors who have a concurrent 10 years at SiS and a lifetime together at GSK have gone and it’s hard to see any other outcome for the CEO - it’s not that he’s sat on Stella results or has an organisation that reveres him.
The other explanation might be he’s already gone, but it’s not announced for whatever reason.
Moon has his own blog and this very recent post makes very interesting reading in the context of recent events and his own admission of never wanting to retire.
See what you think:
https://stephenmoon.com/life-comes-at-you-fast/
Here’s my take on the current situation. 2 of the 3 c.10 year tenure Board members (aka those with the majority culpability for the current company position) have been ousted - John Clarke with a veil of dignity and Tim Wright with anything but. The new chair is being sought with Henry Turcan and Paul Richardson the key players. The first action of the new chair will be to exit Stephen Moon. Why this will only happen then is a reflection of the need to not panic the horses - looking for a new CEO and Chair simultaneously is a terrible signal, however overdue it is. As an aside I’d love to know SM’s response to DP64’s E Mail but, the rational me, would be amazed if there was any response. Plenty of water to pass under the SiS bridge I’d suggest.
Apologies- Stephen.moon@sisplc.com
Believe that is correct. Might be worth adding in Henry Turcan as he’s the NED who represents around 25% of the share capital. Assume he will have an sis e Mail address.
Link to Strava
https://www.strava.com/activities/9537525176
Alas you can’t paste into this chat, it would appear, or else I would have done. Look on Strava itself, it’s likely still there.
I have a screenshot from Strava with date, time & profile picture. 100% accurate. I do appreciate it’s hard to believe, hence the thread title.
The day Stephen Moon didn’t attend the recent AGM he posted in Strava a 15km ride around central London. I’d suggest that highlights - given a truly appalling set of numbers - (1) the contempt investors are held in by Moon and (2) the air cover John Clarke has always given him. Does anyone else know of an instance where a CEO was well enough to ride his bike but not well enough to attend his AGM? About time he was held to account - I’m sure that will be top of the new chair’s agenda
Let's be clear what is happening currently. John Clarke 'retired" because he did not want the ignominy of being voted off as chair. Tim Wright misjudged it and stood for re-election only to resign just before the AGM - i.e he knew he had been voted off. With 2 of the 3 ex GSK self-interested incompetents now history that leaves only Stephen Moon outstanding. He's history frankly, and with that the many current and former decent people he has abused at SIS plc over the years of his commercial and organisational failure will feel justice has finally been served. The business can be really something but it was never going to be under Moon. Here's to a brighter SIS plc future.
So now a failure to meet accounting guidelines for results publication. Interestingly, John Clarke, having served over the 9 year recommendation of good corporate governance as chair already is, I'd assume, up for re-election at the AGM (assuming they manage the 21 days notice period). You'd have to say he really can't be credible. As a further indication of "cheap talk" have a look at SIS plc Glassdoor reviews and see if it supports John Clarke's assertion of a "world class management team." As is well known organisational strength is a lead indicator of future performance and Glassdooor is often a KPI in this domain. Looking bleak under the current leadership would be my assessment. Time for change?
Well results are fact and talk is cheap and boy can Clarke and Moon give it some chat. The new world class bar line - check out the recent reviews on Amazon if you want the facts as to how consumers are responding to the in-house product. In case you are wondering it's not very well.
Well at least we all know what Liz Truss and Kwasi Kwarteng do as a hobby.
Surely, it's time to look at the serial failure being delivered by the current CEO and conclude that fresh eyes and some basic competence are required.
Glassdoor is an excellent means of getting a view of organisational health and thereby future prospects. I'd recommend a scamper down the reviews - they're a damning picture of the CEO and the culture he's created. Talent is fleeing the business and yet the architect of the implosion remains.